Tenant Turnover for Long Distance Investor

[Isaiah Montoya]

Hey everyone,

I own one SFH in Corpus Christi, TX that I manage myself from California. It is a long term rental I have had for 3 years now. I continuously struggle with Tenant Turnover, for example its 4-6 weeks vacant or there is always something that goes wrong. If anyone has any advice, I am open to suggestions.

[Kevin Sobilo]

@Isaiah Montoya, a few thoughts:

1. I think 4-6 weeks for a turnover is about normal. You need some time to prep the unit, do any repairs etc before placing a tenant. 

2. It is possible in some markets and if you are extremely hands-on to place tenants more seamlessly, but this is probably more the exception and may not be plausible when hiring a PM from a distance. 

3. If your average tenant stay is ~2 years and you budget 5% of rent for Vacancy, then 4-6 week turnover is right on the mark! You will have budgeted exactly how much you need to cover the Vacancy. Are you budgeting this money? I guess if your PM charges a tenant placement fee you might be behind for that reason. 

4. Are you keeping tenants 2 years or more on average? If you are turning over a tenant every year, THAT is something you should evaluate! Increase your average length of stay!

5. When you have a Vacancy it isn't only the lost rent that hurts, its the cost to do repairs, cleaning, refreshing the unit etc. In addition if you pay your PM a placement fee that adds to the pain. 

6. Look at your "value proposition". Do you provide all appliances including washer/dryer? Do you allow pets? Are you charging maximum rent or priced a little below market? 

Giving a tenant a better value may increase your average stay and allow you to make more money overall! 

Imagine if you lowered rent 5-10% but your average tenant stayed 4 years. Would you make MORE or LESS money than you are now?!?